Certified Government Financial Manager (CGFM) Practice Exam 2026 - Free CGFM Practice Questions and Study Guide

Question: 1 / 875

What is the minimum life cycle duration for an appropriation?

Three years

Five years

Six years

The minimum life cycle duration for an appropriation is six years. This duration is important in the context of budgetary practices, where appropriations refer to the legal authority for government agencies to spend funds. A six-year lifespan allows for the necessary time frame to effectively utilize the allocated funds, ensuring that projects can be planned, executed, and fully realized.

It also provides a buffer against unforeseen delays and allows for the completion of longer-term projects that may not fit within a shorter timeline. Recognizing this extended period aids in strategic planning and resource allocation within government finance, facilitating better management of public funds and service delivery over time.

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One year

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